Bank of America group calls on OCC to suspend approval of bank license applications from crypto companies like Circle

ChainCatcher news, according to Cointelegraph, the American Bankers Association, along with several banks and credit union groups, sent a letter to the Office of the Comptroller of the Currency (OCC) on July 18, requesting a delay in the approval of banking license applications from cryptocurrency companies, including Circle and Ripple. The letter pointed out that the national trust bank model proposed by these cryptocurrency companies "fundamentally deviates" from the traditional policy framework, and the related business plans lack sufficient transparency for public assessment.

The banking groups emphasized that digital asset custody should not be viewed as traditional trust business, and if regulation is relaxed, it could lead to issues such as unfair capital requirements. In addition, Caitlin Long, founder of the crypto bank Custodia, stated that this matter could lead to legal action and expressed concerns that traditional banks might use trust licenses in the future to evade regulatory obligations.